CIT Vs Maruti Suzuki India Ltd. (Delhi High Court)
The Delhi High Court decided an appeal filed by the Revenue against the Income Tax Appellate Tribunal’s order dated 30 June 2008 for Assessment Year 2004-05. Four substantial questions of law were framed for consideration.
The first issue concerned whether duty drawback accrued to the assessee in the year of export or only upon passing of the order by the appropriate authority. The High Court answered this question in favour of the assessee and against the Revenue, holding that the Tribunal had not erred.
Read SC Judgment in this case: Duty Drawback Accrues After Approval: SC Upholds Delhi HC Ruling
The second issue related to whether unutilized MODVAT credit of earlier years, adjusted in the relevant assessment year, should be treated as actual payment of excise duty under Section 43B of the Income Tax Act, 1961. The Court answered this question in the affirmative in favour of the assessee and against the Revenue.
The third issue involved deletion of an addition of Rs. 6,17,26,038 made by the Assessing Officer on account of alleged excess consumption of raw materials and components. The High Court answered this issue in favour of the assessee and upheld the Tribunal’s order deleting the addition.
